29th Mar 2022 08:07
(Alliance News) - Croda International PLC on Tuesday said it is aiming to accelerate growth in its Consumer Care arm moving forward.
Croda explained the the Consumer Care arm had "evolved significantly in recent years to become a highly differentiated sector for Croda", comprising four business units and "each with leading market positions in fast growth niches".
By 2025, Croda targets sales of GBP1 billion in Consumer Care, up from GBP763 million in 2021.
The company expects Consumer Care to deliver a minimum of 5% annual sales growth, with synergies from the recent Fragrances & Flavours acquisitions in addition to this.
Recent acquisitions include Parfex SA, a French fine fragrance unit bought by Croda's Iberchem unit in April. Iberchem itself, another fragrance manufacturer, was acquired by Croda back in November for EUR820 million.
It added that, in 2022, there is likely to be "an additional benefit to sales from the successful recovery of cost inflation". Return on sales is expected to improve over the medium term, from 24.7% in 2021, principally through improved business mix and innovation, the company explained.
Chief Executive Steve Foots said: "Trading in the first three months of 2022 has been robust, including a strong start for Consumer Care, and we continue to successfully recover input cost inflation."
Shares in Croda were up 2.0% at 7,672.00 pence on Tuesday morning in London.
By Heather Rydings; [email protected]
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